boiler room

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Boiler room

Used to describe place or operation in which unscrupulous salespeople call and try to sell people speculative, even fraudulent securities.

Boiler Room

Informal; a place where workers make unsolicited telephone calls to completely unknown persons in an attempt to convince them to invest in a particular venture. Boiler rooms are controversial and some jurisdictions have put in place laws limiting their legitimate use. In any event, the term has a negative connotation; one often hears of boiler rooms in the context of shady and perhaps illegal investments.

boiler room

An area in a sales operation in which are located personnel who are engaged in contacting prospective buyers, usually by telephone, and in using high-pressure tactics to sell securities. These operations are associated with high commissions and unethical practices.

Boiler room.

A boiler room is a location used by con artists to contact potential victims out-of-the-blue -- an approach known as cold calling -- in an attempt to sell high-risk investments that may or may not be legitimate.

Boiler room scammers typically use high-pressure tactics to close an immediate sale and are unwilling to provide written information about either the investment they are pushing or themselves.

boiler room

A lead-generating system usually characterized by large groups of people working in cubicles making cold calls to consumers in order to gauge interest in real estate investments,insurance products, refinance offers, or any number of other products.The leads are then sold to professionals for follow-up. Sometimes,the boiler room operation also engages in high-pressure sales techniques, which has lead many states to pass legislation allowing a cooling off period within which to reject and void any contracts entered into as a result of such tactics.

References in periodicals archive ?
Check out SEC Halts Lottery Ticket Boiler Room Scheme: Enforcement on ThinkAdvisor.
Boiler room scams involve fraudsters using high pressure sales tactics to con investors into buying non-tradable, overpriced or even non-existent shares.
After gaining experience in the boiler room, he later set up a business on his own with a colleague, and considered moving the operation from Spain to Sweden before his arrest.
The leaflet, which was first published in 2006, provides information on how to identify a boiler room and what to do when they contact you.
Investors are reminded to just hang up the phone when contacted by boiler rooms as in most cases these investments do not have a happy ending.
Mailers result in about a 5 to 7 percent response rate for most boiler rooms.
Boiler rooms date back to the 1920s, when the purveyors of worthless penny stocks first discovered that a few dozen phones set up in a basement gave them the power to cheat and deceive on a national scale.
Contract Notice: Renovation work on the boiler rooms of buildings ab, C and d
Key to the fraud was Secure Trade & Title Limited, which billed itself as a safe way to invest as it was a UK company with a British bank account but in reality was a stark illustration of the way that boiler rooms use multiple overseas bases to fleece the unwary.
Many of the so-called boiler rooms are based overseas, making it difficult for police and the financial authorities to shut them down.
INVESTORS in North Wales should protect themselves from so-called boiler rooms scams, says a local stockbroker.